There are a number of government regulations aimed at ensuring landlords manage their properties responsibly and consider the welfare of their tenants. One of these regulations which has recently caught media attention is the Energy Efficiency Regulations 2015.
Why? As of 1st April 2018, landlords of any privately rented domestic and non-domestic property in England or Wales should ensure their properties reach at least an Energy Performance Certificate (EPC) rating of E before granting new lets or renewing tenancies with existing tenants.
Under these circumstances, it will therefore be illegal to rent out properties assessed at grades F or G (the lowest grades of energy efficiency). For existing tenancies, landlords have a little longer to comply, with a deadline of 1st April 2020 for domestic properties, and 1 April 2023 for non-domestic properties.
What does this mean for landlords?
First of all, if any rented property fails to conform to this standard by the appropriate deadline, landlords will face a civil penalty of up to £4,000.
By now, landlords should have confirmed the energy efficiency of their properties, which, if it falls short of the Grade E standard, taken appropriate measures to improve the property’s energy rating.
In line with their property’s energy rating, landlords may also be forced to consider rent reviews, the value of their property, dilapidations assessments and refurbishment costs.
“Our team of UK property experts scour the UK market to find top quality properties with compelling investment cases. This quality is evident in the EPC ratings for all of our properties on the platform, as out of 700 units, just one of our properties is below an E rating. This flat was acquired within a larger block of 19 flats, and this one flat will be improved to at least an E grade before the tenancy expires.
Ensuring all rental properties meet these new regulations is a vital step in increasing energy efficiency standards across England and Wales, and challenges landlords to provide quality rental properties for tenants.” says Rob Weaver, our Director of Property.
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